Apple wants to keep Japan Display as its supplier. (Image via Apple Insider)

Japan Display Receives US$100 Million Investment from Apple

Kinanty Nadia Putri
Business & Industry
Electronic Device
Jun 28, 2019
1571
Japanese LCD technology company is set to receive a US$100 million investment from Apple which makes shares of the screen maker up as much as 32% in Tokyo, the Asahi newspaper reported on Thursday (6/27).

With this investment, Apple reportedly will move LCD orders from China to Japan Display, where the American company currently accounts for 60% of Japan Display’s revenue. Japan Display is facing funding crisis due to Apple’s recent decision to finally shift from using LCD to organic light-emitting diode (OLED) and dissipating sales of iPhone XR, the only model that still uses LCD in the 2018’s line-up.

Japan Display and Apple representatives separately declined to comment on the report.

It’s not the first time Apple has gotten involved with Japan Display. In 2015, Apple paid most of the US$1.5 billion costs associated with Japan Display’s consecration of a new LCD factory. The agreement stated that Apple would get paid back a percentage of each display that successfully sold. However, according to a report in March, Japan Display still owned Apple for much of the cost stated above. Yet in May, Apple agreed to wait for that repayment.

On the track of their best day since May this year, shares of Japan Display has been up 18% at the close of morning trade in Tokyo.
Japan Display was formed in 2012 as an LCD joint venture by Toshiba, Sony, and Hitachi in a government-brokered deal.

Source: https://www.channelnewsasia.com/news/business/japan-display-to-receive-us-100-million-investment-from-apple-11666068

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